– Balloon One, the technology partner optimising global supply chains, has today launched research from businesses operating in the food and beverage (F&B) supply chain to understand the main causes of food waste, finding a growing crisis of avoidable waste which is being driven by outdated warehouse technology. This is creating financial, reputational and operational risk for supply chain leaders across the food and beverage sector.
UK F&B supply chains are losing an average of £156,599 per business every year due to avoidable food waste caused by internal operational issues. According to the study, Out of Date, UK food and beverage businesses lose an average of 12% of their fresh or perishable stock every year, with 7% of this loss attributed directly to internal issues such as over-ordering, poor stock rotation and handling errors.
When asked about the non-financial consequences of waste, supply chain managers cited reputational damage (27%), negative impacts on customer relationships (20%), and failure to meet sustainability objectives (20%) as the most significant risks. As scrutiny around ESG performance and supply chain transparency increases, these issues are moving from operational concerns to board-level priorities, and must be addressed now or businesses risk losing customers and a negative impact on their brand reputation.
Despite this, 64% of managers say they are confident that their current warehouse systems are adequate to minimise food waste, even as the majority report rising levels of avoidable loss. This complacency paradox suggests many businesses are relying on infrastructure that is no longer fit for purpose. The average warehouse or inventory management system in use today was last upgraded nearly 6 years ago, around the pandemic, and over 60% still rely wholly or partly on legacy, spreadsheet-based or manual processes.
Craig Powell, Managing Director at Balloon One, said: “Our research shows that millions of tonnes of food and drink are being binned in the UK every year. Supply chain managers know a significant proportion of this waste is avoidable and are under enormous pressure to manage it more effectively, but their confidence in legacy systems is masking the true scale of the problem. This issue must be addressed immediately or businesses across the food and beverage sector risk harming their sustainability objectives, customer relationships, and margins.”
The research identifies outdated technology (37%) and a lack of integration between systems (33%) as top contributors to internal waste. Only 61% of respondents say their warehouse and forecasting systems are currently integrated, but more than half (52%) plan to upgrade or adopt a new warehouse or inventory management system within the next five years, with many citing near-term plans.
Despite the challenges uncovered, the research highlights a sector that remains increasingly strategic in its approach to technology investment, with top drivers for investment including business growth (33%), customer satisfaction (29%), and providing intuitive tools for employees (29%). Managers are also optimistic about the future with nearly 80% of supply chain managers confident the food industry can halve food waste by 2030, in line with national targets.
Powell adds, “Managers believe the greatest opportunities for waste reduction lie in picking and packing, forecasting, and stock rotation – all areas where modern warehouse management systems can deliver immediate impact. Recovered savings from food wastage are most likely to be reinvested into improving sustainability credentials or further technology upgrades, so for F&B supply chain leaders, tackling waste is also about future-proofing the business, safeguarding brand trust, and turning the warehouse from a cost centre into a strategic advantage.”
